S&P Gives Warning on Debt Limit

According to S&P, the U.S. continues to be at risk of another credit downgrade. According to the National Journal:

“… Nikola Swann, Standard & Poor’s top analyst for the U.S. government's rating, said that making big fiscal decisions in a crisis setting hurts the U.S. rating outlook and that continued ‘political brinksmanship’ remains a major threat.”

“’So far we don’t see any good evidence that there is more cooperation between the two parties than there was in 2011, nor that the American policymaking system as a whole is any more effective, stable, and predictable than it was in 2011 based on the latest debate,’ Swann said.”

So what does S&P suggest? Getting a balanced deficit reduction plan done (where have we heard that before?):

“If Washington wants to avoid another downgrade, Swann said S&P needs to see a ‘credible,’ roughly five-year plan that would ‘keep the debt-to-GDP ratios from continuing to rise as they have been for most of the past 10 years.’ That deal would need to have substantial enough bipartisan support from lawmakers in both chambers to ensure that even if an election flipped the parties in power, lawmakers would still support the plan in place.”

Sounds like the big, bipartisan solution that we’ve been advocating all along. How much more proof do Republicans need before they’re ready to stop holding the economy hostage, and instead reach agreement on a balanced deficit reduction deal?